China’s ferrous futures and steel markets continued to slump across the board. The benchmark steel and iron ore contracts shed 3-4% during the day, while spot rebar and hot rolled coil prices dropped 70-150 yuan ($10-22) per tonne.
Short-sellers are unleashing their energy amid the market where confidence is nowhere to be found, a trading source in Shanghai said.
Liquidity remained dry for both seaborne and port cargoes, as mills and traders are both drawing down their iron ore stocks, he added.
Fixed-price seaborne offers have been trimmed lower and lower on platforms over the past few days, but "nobody seems to be buying in during this round of downturn", according to sources.